Blog


Category Archives for: Performance Stock Units

Too big to fail? Complexity of long-term incentive comp changes the picture
02 Jul

Too big to fail? Complexity of long-term incentive comp changes the picture

The annual election mix of NQOs vs RSUs was automatic until this year. Even the smartest guy in his class has to grudgingly admit that his portfolio is growing “too big to fail.” Victor has been picking stocks and making gains. Now his executive compensation is the largest position in his portfolio. Who’s looking after the company stock and what will he do about the annual election?

Read More
When an 83(b) Election Converts a Windfall to Capital Gains
02 Jun

When an 83(b) Election Converts a Windfall to Capital Gains

The IPO of this San Jose sales manager’s technology company has provided a windfall he never thought possible. His equity compensation – a Restricted Stock Award -- has turned into serious money after the company’s IPO. William wisely made an 83(b) election at grant date and before the public offering. What financial decisions should he make now for the long run and what is he missing?

Read More
PSUs and Insider Rules Confound Executive in New Role
31 Mar

PSUs and Insider Rules Confound Executive in New Role

When a rising star is named president for a west coast IT company, she acquires some new and enviable issues. Valeria is an insider, for starters, which means she’ll need to gain pre-clearance for any sale of company stock and is now required to file SEC Forms 3, 4 & 5. What’s more, she’s been granted Performance Stock Units (PSUs), whose features and performance targets are complex but achievable. One year in, she’s beginning to get attractive outside salary offers, so she wants to learn more about what she has.

Read More
Accelerated Vesting Could Offset Uncertainty in a Merger
05 Dec

Accelerated Vesting Could Offset Uncertainty in a Merger

When company ownership is in play, all assumptions are on the table as to the company’s future and the executive’s own employment. Marcus wondered if his unvested Restricted Stock Units and Nonqualified Stock Options may provide an offsetting windfall for the long-tenured company executive.

Read More
How performance shares are treated after a death
24 Sep

How performance shares are treated after a death

Forty-eight-year-old Christopher was senior vice president of security at a real estate search company when he died unexpectedly in a tragic car accident. Now his wife, Denise, 48, needs help to understand how her late husband’s performance share units (PSUs) will be handled.

Read More